00:00You're seeing Sharps professional bettors get into prediction markets more and more and they're sort of diverting some of the
00:06money that they would normally be their bankroll that they would normally be wagering with all different manner of sports
00:11books.
00:12They're coming to prediction markets with it and they like it because they don't get limited out.
00:17So if you are a really good bettor, most traditional sports books are going to recognize that at a certain
00:23point and they're going to start capping how much you can wager makes it hard to make money.
00:27Whereas the prediction markets, they are matching up, right, two sides of an exchange.
00:32They don't care who they're keeping a little piece.
00:34They don't care who the winner is.
00:36So they don't limit these bettors.
00:37They can do as much as they want.
00:38OK, they don't care who the winners are.
00:40But what about states?
00:41What about regulators?
00:43What about those state governments that say, wait a second, we just figured out how we can tax these winnings
00:48from the, you know, quote unquote, traditional gaming platforms, the draft kings and the fan duels.
00:53Now we have to figure out what to do with, you know, call sheet, poly market and Robin Hood.
00:57Yeah, I mean, this is a legal battle that is unfolding right now where you're seeing pretty much every state
01:02that has legal online sports betting coming forward and saying, we're not OK with this.
01:08We want call sheet, poly market, other prediction markets to cease and desist.
01:12We think that this is sports gambling by another name and we have jurisdiction over it and we have the
01:18right to tax it.
01:19That's really what they're concerned about.
01:20On the other hand, the prediction markets say, look, we are a different thing.
01:24We are regulated by the CFTC that preempts any kind of state control.
01:29And we're allowed to do these types of contracts in sports as long as the CFTC lets us.
01:36Well, the CFTC hasn't said a whole lot.
01:39It feels like they're kind of they're regulating it.
01:41But are they doing very much?
01:42And I guess the other group or stakeholders that have a lot of money at stake here are the professional
01:47sports leagues.
01:47Where did they fall in all of this?
01:49They initially were really skeptical.
01:52You know, we saw the first inklings of this last year around this time with the Super Bowl Crypto dot
01:57com.
01:58And call sheet came forward and started offering sports events contracts.
02:01The CFTC didn't stop them.
02:03The sports leagues came forward and said, look, we have all of these things that we do to protect our
02:08interests when it comes to sports betting.
02:10We have, you know, monitoring for suspicious trading activity.
02:14We have prohibited better lists.
02:16We want to make sure that if this type of activity is going to happen in this context, that we
02:20duplicate those efforts.
02:22And so that has started to happen.
02:24You're seeing platforms like call sheet and poly market start to use some of the same firms and the same
02:31systems to monitor for suspicious trading, to try to keep lists of inciting insiders who aren't allowed to trade on
02:38these platforms.
02:39So but the question of kind of is that enough and is it sufficient to satisfy regulators, to satisfy the
02:46public, to satisfy the leagues is all kind of to be determined.
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